Is there any bubble in the Istanbul Real Estate?
Expanding Real Estate Market in Istanbul has become a rising star for the people who are looking to gain profit by investing into properties around the world. This significant increase on demand has created questions on investors mind, if there is any Istanbul Real Estate Bubble. Because of Turkey’s highly developing economy in the last decade, there is a thought that it should be a bubble with highly increasing prices. However, it is not that simple when it is analyzed thoroughly with the statistical outcomes.
According to governmental authorities in Istanbul, the city drastically keeps expanding by population, business and location. Also the increasing number of international companies in the Istanbul region creates more opportunities for young people from all over the world for better career options. This opportunities has increased the number of young people looking for corporate careers.
In the real estate market, many investors know that it is important to have young population in the process of identifying the location with investment value. Young people generates the drive for better housing and architectural advancements in order to have the actual value of their payments. Also professionals that are looking to have higher living standards, increase the efficiency of construction that developers offer in the market.
Considering increasing real estate prices around the developed countries, Istanbul still offers much better opportunities for the people who are looking to invest in a property. Especially for the investors, market has always have much to offer for people who are looking have lower expenses for living standards. This being the case, there are also many people around the world looking for luxury real estate in Istanbul.
There are also other determinants that affect the prices along with the demographic and geographic analysis such as currency change, democratic advancements, etc. If we take Turkish economy under consideration for the last decade, we can understand that Turkish Lira’s being strong against dollar do not meet the needs for both international and domestic investors. For this being the main reason, Turkish government cooperating with Turkish Central Bank has decided to decrease the value of Turkish Lira in order to increase the export deficit occurred in the last couple of years.
Lower value of the Turkish Lira has shown its importance for the Turkey’s economy in order to increase the manufacturing and industrial advancements for every sector. While manufacturing will keep increasing, Turkish corporations will have stronger stand point for employment and salary wage in order to keep skilled employees in their company. In the result of this movement, pricing for the Istanbul houses will keep increasing along the way.
However, there are still some overpriced projects in the Istanbul Property Market. In order to avoid paying more than property’s value, investors should work with local agencies who have expertise about the investment values and the location. Some people try to avoid paying agency commissions in order to save money; however, this usually creates a higher loss compared to purchasing an overpriced property that does not have an investment value.